Teena Lerner: Dividing the Pie at Rx Capital (A) Case Solution

Tina Lerner started his own hedge fund company in 2001 after almost 20 years as an analyst Star biotechnology and hedge fund manager. After the initial stage, it has become a very profitable company. In 2004, however, one of her four analysts have lost a lot of money for the firm. If Lerner follow the existing system of compensation, it will wind up significantly underpay her other analysts, all of whom were executed well. Should it follow a system of compensation or not? And what should be done about the inefficient analyst? "Hide by Boris Groysberg, Victoria W. Winston, Robin Abrahams Source: Harvard Business School 25 pages. Publication Date: June 22, 2006. Prod. #: 406088-PDF-ENG